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The Dairyman JANUARY 2010 33
NEWS
PLANNING is underway for the world's largest and most
technologically advanced milk processing facility which will
be built on the outskirts of London.
Arla Foods UK plans to invest in building the one billion litre
liquid milk processing factory which will be operational in 2012.
Peter Lauritzen, CEO of Arla Foods UK, said the company
was committed to a long-term sustainable future in UK and the
construction of the new dairy demonstrated that commitment.
"Incorporating the most sustainable building techniques the
dairy will be the largest, most efficient and environmentally
advanced in the world."
Mr Lauritzen said the new operation would take dairy process-
ing into the next generation.
Neil Parish, a Somerset farmer and former chairman of the EU
Agricultural Committee, said the Arla
announcement was a statement about the
strength of the industry for the future.
"It gives our farmers a reason to get out of
bed. It gives them confidence. It gives them a
market."
He hoped the Government could make sure
there would be enough farmers around in
three years' time to supply Arla as British
dairying has been suffering over recent years.
"The number of UK dairy farms has halved
since 1997 and on average 26 farmers leave the
industry every week and one in 10 farmers say they will leave the
industry within two years."
Milk production has fallen to its lowest level in 37 years and
114 million litres of milk supply was lost because of the slaugh-
ter of 16,000 dairy cattle as the result of TB testing but retailers'
share of the milk price has increased from six per cent to 16 per
cent in 10 years with no return to farmers pockets.
Mr Parish said it all came down to farmgate prices.
"If farmers are paid enough money to invest and grow, the
industry will survive and thrive. If not, it will revolt and die."
Earlier in the year continental dairy farmers staged protests
over the crisis caused by the dramatic slump in milk prices.
Milk farmers' groups said world prices had sunk so low that
they had to sell milk at half their production costs, leaving more
and more farmers unable to pay their bills.
The crisis drove many EU farmers into a "milk strike", with
thousands refusing to deliver milk to the processors.
Protesting farmers torched hay bales and tyres in the streets of
Brussels, Luxembourg and Paris and sprayed truckloads of milk
onto pasture.
The European Commission created a High Level Group to
examine new structures to help the dairy industry thrive into the
future. Mr Parish said he was particularly buoyed to see the EU
Commission pinpoint the contract as a fundamental factor in get-
ting the industry back on its feet.
He said farmers needed a good contract with their buyer as for
too long they had been exploited in this area. He believed con-
tracts defined the price a farmer would receive and that was the
single most important piece of paper a dairy farmer owned.
Mr Parish said as the market began to pick up with the econo-
my, dairy farmers needed to keep challenging their milk purchas-
er over price prospects.
"Dairy processors seem to be enjoying a period of strong prof-
itability and it is very encouraging seeing them operating with
such scale and efficiency but it is no good if the processors are
strong and vibrant if they have no suppliers," he said.
--- Rachel McNaughton
Arla plans world's
biggest milk plant
Peter Lauritzen
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